For personal use only 2016 Full Year Results Presentation 26 August 2016
Group Overview For personal use only Australian leader focused on the automotive aftercare and accessories market Vehicle Protection Automotive Electrical & Cable Automotive Component Vehicle Panel Repair Products & Accessories Accessories Remanufacturing Brands — Strong Balance Sheet, highly cash generative — Culture of employee ownership — Experienced management with proven track record of targeted acquisitions and successful integration 2016 Full Year Results AMA Group Limited 1
June 2016 Full Year - Normalised Results For personal use only 2016 full year results exceed previous guidance – underpinned by strong operating performance Prior 2 Current Change EBITDA - continuing operations : Reported ( $’000) 24,672 14,194 73.8% EBITDA - continuing operations : Normalised 1 ( $’000) 31,921 14,194 124.9% NPBT - continuing operations : Reported ($’000) 13,492 12,444 8.4% NPBT - continuing operations : Normalised 1 ($’000) 23,695 12,444 90.4% Basic EPS - continuing operations : Reported (cents) 1.58 2.68 (41.0%) Basic EPS - continuing operations : Normalised 1 (cents) 3.56 2.68 32.8% Gearing ratio 1.73% 7.60% (5.87%) Net Operating Cash Flows ($’000) 36,761 7,820 370.1% Notes: 1. Normalised excludes the effect of various abnormal items (refer Appendix A) 2. Prior comparative period – excludes the results of Perth Brake Parts which was sold on 1 February 2016) 2016 Full Year Results AMA Group Limited 2
Vehicle Panel Repair For personal use only Vehicle Protection Automotive Electrical & Cable Automotive Component Brands Products & Accessories Accessories Remanufacturing A$211.5 m (+398.2%) 3 Sales 1 A$123.7m (+372.5%) 3 GM $ 2 GM % 2 58.5% – Solid revenue growth in the base business – Consolidation opportunity continues within highly fragmented industry – Highly acquisitive – Shipstone, BMB, Gemini, Woods, Stanleys, Micra, BDS and Keswick in past Comments two years (63 sites nationally) – Strong relationship with major insurers (inc. Suncorp and IAG) and prestige car manufacturers – Integration progressing well with cost saving / synergies ahead of expectations – Several more acquisitions are currently being considered Notes: 1. Sales include only external transactions and exclude revenue from intragroup group transactions 2. Gross Margin (“GM”) for Panel does not include direct labour or an overhead allocation 3. Period on Period growth 2016 Full Year Results AMA Group Limited 3
Vehicle Protection Products & Accessories For personal use only Brands A$27.6 m (+3.1%) 3 Sales 1 A$12.6 m (+4.7%) 3 GM $ 2 GM % 2 45.6% – Leading manufacturer of alloy bullbars – 50%+ market share across aftermarket, fleet and OEM sales channel in alloy – Impact of rationalised production facilities expected to deliver benefits going forward Comments – Insurer relationships creating supply opportunities for bullbars – Further potential acquisitions in this segment Notes: 1. Sales include only external transactions and exclude revenue from intragroup group transactions 2. Gross Margin (“GM”) for Panel does not include direct labour or an overhead allocation 3. Period on Period growth 2016 Full Year Results AMA Group Limited 4
Automotive Electrical & Cable Accessories For personal use only Brands A$15.0 m (-6.8%) 3 Sales 1 A$4.4 m (-14.2%) 3 GM $ 2 GM % 2 29.2% – Product innovation creating organic opportunities – Pursuing broader product segments including industrial, marine, leisure and automotive retail sectors Comments – Opportunity to expand through vertical integration in supply chain for Panel Repair division – Goodwill impairment of $2 million Notes: 1. Sales include only external transactions and exclude revenue from intragroup group transactions 2. Gross Margin (“GM”) for Panel does not include direct labour or an overhead allocation 3. Period on Period growth 2016 Full Year Results AMA Group Limited 5
Automotive Component Remanufacturing For personal use only Brands A$7.7 m (+19.5%) 3 Sales 1 A$3.2 m (+19.2%) 3 GM $ 2 GM % 2 41.4% – Solid organic growth profile with Fluiddrive – Strong relationship with major manufacturers – Integrated relationship with 4 out of the top 6 market share OEM brands Comments – Opportunity to expand in core market areas – Strong management and team buy-in are delivering exceptionally strong operational results Notes: 1. Sales include only external transactions and exclude revenue from intragroup group transactions 2. Gross Margin (“GM”) for Panel does not include direct labour or an overhead allocation 3. Period on Period growth 2016 Full Year Results AMA Group Limited 6
Summary For personal use only � Focused provider of Australian automotive aftercare services and accessories � Leading position in Australia’s panel repair market � Strong operating cashflows, further increasing following transformational acquisitions � Strong balance sheet with ability to take on additional leverage � Well positioned to drive ongoing consolidation in panel repair market � Experienced management team bolstered by new additions 2016 Full Year Results AMA Group Limited 7
Appendix A – Normalisation Adjustments For personal use only FY2016 Reported Results $’000 EBITDA from continuing operations – Reported 24,672 Cost associated with the disposal of Perth Brake Parts 111 Employee Equity Plan expense 3,644 Business Acquisition expenses 916 Reorganisation of the Vehicle Protection & Products division 400 Reorganisation of the Automotive Electrical & Cable division 200 Site Integrations – Vehicle Panel Repair division 500 Site Closures – Vehicle Panel Repair division 350 Redundancies – Vehicle Panel Repair division 1,128 EBITDA from continuing operations – Normalised 31,921 2016 Full Year Results AMA Group Limited 8
Disclaimer For personal use only This presentation contains summary information about AMA Group Limited (ABN 50 113 883 560) (“AMA Group”) and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete. It should be read in conjunction with AMA Group’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, which are available at www.asx.com.au. This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation to acquire AMA Group’s shares or other securities. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. AMA Group is not licensed to provide financial product advice in respect of AMA Group shares or other securities. Past performance is no guarantee of future performance. No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of AMA Group and its related bodies corporate, or their respective directors, employees or agents, nor any other person accepts liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability from fault or negligence on the part of AMA Group, its related bodies corporate, or any of their respective directors, employees or agents. This presentation may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to AMA Group’s business and operations, market conditions, results of operations and financial condition, specific provisions and risk management practices. When used in this presentation, the words ‘likely’, ‘estimate’, ‘project’, ‘intend’, ‘forecast’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’, ‘aim’, ‘should’, ‘potential’ and similar expressions, as they relate to AMA Group and its management, are intended to identify forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and assumptions and other important factors that could cause the actual results, performances or achievements of AMA Group to be materially different from future results, performances or achievements expressed or implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. 2016 Full Year Results AMA Group Limited 9
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